1. Field of the Invention
This invention relates generally to commercial trading systems operating over a network. In particular, this invention relates to a network trading system capable of implementing the exchange of multiple goods and services between multiple users of the trading system.
2. Related Art
As the global computer network known as the “Internet” continues to grow globally at a rapid pace, an increasing number of people and businesses from around the world are accessing the Internet to communicate with each other and conduct various commercial transactions. The concept of E-Commerce first came about in the early 1970's with the development of E-Commerce applications such as Electronic Funds Transfer (“EFT”), which allows funds to be sent electronically from one organization to another. Next came Electronic Data Interchange (“EDI”), which allows the electronic transfer of routine business documents. Many other E-Commerce applications such as stock trading and travel reservation systems evolved out of EDI until finally the commercialization of the Internet brought about the introduction of E-Commerce.
E-Commerce may be defined as any business activity conducted using electronic data transmission technologies, such as those of the Internet and the World Wide Web (“WWW”). E-Commerce involves buying, selling, transferring, or exchanging products, services and/or information via computer networks and is a major distribution channel for the purchase and exchange of goods and services, as well as the posting of various managerial and professional jobs. E-Commerce may be defined from many perspectives, some of which may be: Communications—the delivery of goods, services, information, or payments over computer networks or by any other electronic means; Commercial—the capability of buying and selling products, services and information on the Internet and via other online services; Business Process—doing business electronically by completing business processes over electronic networks; and Service—addressing the desire of firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery.
The conducting of business electronically may be subdivided into four major categories of E-Commerce: business-to-consumer (“B2C”), business-to-business (“B2B”), consumer-to-consumer (“C2C,” which may also be referred to as “peer-to-peer”), and consumer-to-business (“C2B”). Business-to-consumer involves online transactions being made between businesses and individual consumers such as the selling of products and services. Business-to-business involves businesses making online transactions with other businesses. Consumer-to-consumer or peer-to-peer may be characterized by exchanges that involve transactions between and among consumers, with the most well-known example being eBay.
Although E-Commerce is still not widely used in the B2C and C2C categories (according to a recent government report, online retail sales are only 2.2% of all retail sales), it is playing an increasingly prevalent role in the lives of consumers, particularly those already using the Internet. However, online sales as a portion of overall sales has greatly increased recently and continues to do so. Doing business on the Web requires most of the same activities and components needed to successfully conduct business in the offline arena. Key components of running an e-commerce store or business may be categorized as follows: placement, merchandise and audience size, presentation, payment, security and fulfillment.
During the last few years, E-Commerce has brought about successful virtual companies such as Amazon.com and eBay.com. Amazon.com is just one example of an ever-increasing number of virtual companies that sells a growing number of new and used goods directly to the consumer. eBay is the world's number one online auction site in which people can buy and sell almost anything, including expensive automobiles on eBay Motors, subject to certain limitations. eBay allows shoppers to browse items from the comfort of their homes or offices, at any time of the day or night, and then submit a bid to purchase a product shown on the eBay web site.
Another type of exchange of good and services is barter. Users trade items they own directly for other items instead of cash. In general, the importance of barter in economies has declined after the introduction of money, but is regaining popularity as the Internet connects a large group of potential barter partners, thus increasing the chances of a successful exchange. A large number of barter web sites have sprung up, offering users the possibility of exchanging items they no longer want for items or services for which they have a need.
The primary problem with barter, however, is the need to match trade partners who are willing to exchange the specific goods or services they each have to offer. While the Internet makes it possible for people from distant locations to find such a partner, the likelihood of finding someone who needs your particular goods or services, while you need or want what that person has to offer in exchange, remains small. In other words, the probability of a successful two-way barter match between distant partners is not very high. It is even more unlikely that a closed multi-party trade transaction can be successfully initiated and closed.
Therefore, there is a need for a network-based barter system that solves the problems recited above and allows the users of a network, for example, the Internet, to exchange goods and services with other users of the network.